IT may have the highest prices but Sydney has actually been the country’s weakest performing property market for much of the 21st century.
An analysis of price movements since 2002 showed Sydney property values grew at a slower rate than those in every other capital.
Sydney growth for the 15 years was also below the average for the eight capitals combined.
Harbour City prices grew by 142 per cent over the period, while the average for all capital was 161 per cent.
Roughly half of the Sydney growth in that time occurred over the last five years when the city was going through an unprecedented boom.
The analysis of the Australian Bureau of Statistics’ Established House Price Index further revealed the strongest market was in Tasmania.
Hobart growth was nearly double Sydney’s at 220 per cent and narrowly about Melbourne growth of 208 per cent.
- Hobart 220%
- Melbourne 208%
- Darwin 160%
- Brisbane 160%
- Perth 159%
- Adelaide 147%
- Canberra 146%
- Sydney 142%
The difference was that the Hobart growth came off a considerably smaller base, with small Sydney gains often eclipsing larger Hobart increases in dollar terms.
The 26% per cent jump in Hobart prices recorded over 2002-2003, for example, represented an increase of $35,350, while Sydney’s 17 per cent gain was equivalent to $66,750. The Hobart medium price was $137,150 and the Sydney medium price was $387,500 in 2002.
Peter Koulizos, chairma of Property Investment Professionals of Australia, which did the analysis, said slower Sydney growth over the 15-year period was due to a long slump during the 2000s.
The strong growth in Hobart prices suggested that affordability was a major incentive for buyers, he added.
Queensland Times (Ipswich), 24 February 2018